Examining Developer Actions that Embed Protracted Conflict and Dysfunctionality in Staged Multi-owned Residential Schemes

Abstract

Anecdotal evidence suggests that if inappropriate decisions are made by developers in the initial establishment phase of multi-owned residential schemes, conflict and long-term dysfunctionalism for the eventual owners result. This paper maps out practises commonly utilised by developers in establishing staged, multi-owned residential developments and the consequences that these practises can have on a scheme in the short and long-term. Findings stemming from twelve semi-structured interviews conducted with key strata and community title industry experts from around Australia are reported. It appears there are a number of practises, including; inappropriate budget setting, entry into inappropriate long-term contracts, and retention of majority voting power which can affect the viability and functionality of a scheme and also incite conflict for many years following cessation of the developer’s formal involvement with a scheme.